ONGC plans to start the development work at cluster 2 of its Krishna Godavari KG-DWN 98/2 block by November.
Oil and Natural Gas Corporation (ONGC) plans to start the development work at cluster 2 of its Krishna Godavari KG-DWN 98/2 block by November. The company has already finalised tenders for subsea production systems, while tenders for shallow water platforms and onshore oil terminals are in progress, a senior company official said. “We have finalised two tenders while five are in progress for the development work at Cluster 2 of KG-DWN 98/2 block. Total investment for depths ranging from 300 meter to 3,200 meter will be around Rs 34,000 crore,” DK Sarraf, chairman and managing director of ONGC said. Total production from cluster 2 will be around 78,000 barrels of oil per day, while the peak production is estimated at 15.57 million metric tonne of oil equivalent, and 45.49 billion cubic meter of gas. “The peak production from cluster 2 will comprise 17% of ONGCs total oil production, while 27% of company’s gas production. We plan to start the drilling of development wells in six-months-time or by November,” Sarraf said. Cluster 2 comprises of both oil and gas fields with oil fields grouped in Cluster 2A and gas fields in Cluster 2B. The oil fields are identified as A2, P1, M3, M1 and G-2-2, whereas the gas fields are named R1, U3, U1, and A1.
The first gas production from the project is expected in June 2019 followed by oil production in March 2020. The Cluster 2 development is scheduled to be completed by June 2020, Sarraf said. The KG-DWN 98/2 block has two other clusters – Cluster 1 and Cluster 3. The field development plan for cluster 3 – primarily a gas field – is planned in a year’s time. The gas reserves at cluster 3 are estimated at almost three times of Cluster 2 would constitute around 40% of ONGC’s gas production in few years time.
Cluster 1 is adjacent to Reliance Industries KG D6 block and is involved in dispute. “We believe major quantity of gas has flowed to Reliance fields but there were certain discoveries that we isolated but on their own they were not found feasible for production. But after we acquired GSPC fields in Krishna Godavari basin we believe their platforms that are bigger in size and can be used to monetise the isolated discoveries in Cluster 1. We are in process of making a field development plan for cluster 1 too, but would not like to set a timeline for that,” Sarraf said. From East Coast ONGC sees a total production of 88,000 barrels of oil and 47 mmscmd of gas in next few years time.